One word: disintermediation. iFlowReader was acting as an intermediary, selling a publisher's ebook to a reader and taking 50% of the revenue. Why should Rand

One word: disintermediation. iFlowReader was acting as an intermediary, selling a publisher's ebook to a reader and taking 50% of the revenue. Why should Random House pay someone 50% of the selling cost for doing an arbitrage play on a bunch of ones and zeros with no additional effort? Random House can cut out the middle man (who adds no value) and sell it themselves. It's a smart business move. Now iFlowReader claims to offer a more compelling interface, so pivot and find a way to sell the reader software either to end-users who can import their already-purchased ebooks or license it to the publishers. Offer branded versions of the software to the publishers if it's that good and charge the publishers based on a percentage of the gross purchased through the software, which should be quite easy to track.